1. In accordance with the provisions of Article 19 (3) of the Fund Agreement, a participating country may, on the basis of the needs of its balance of payments or reserve status, apply to the Fund for arrangements under the Special Drawing Rights Account to be converted to other Participating countries for free use.
2, according to the second paragraph of article 19 of the fund agreement, (b) the provisions of a participating country can also be in agreement with other members of way, with Special Drawing Rights (SDRS) converted into the equivalent amount of other currency (including free use of foreign exchange), without the consent of the fund’s approval, also don’t have to follow the rules and principles of funds (including the foreign exchange restrictions “need”).
3. In accordance with Article 17, paragraph 2, of the Fund Agreement, a Participating Country may apply for the transfer of its SDR holdings under the Special Drawing Rights Account to the General Resources Account in order to cover the debt incurred by the Participating country in respect of its reserves under the General Resources Account which are less than 25% of its quota.
Or to repay its other obligations to the Fund (such as obligations under Article 5, paragraph 6, of the Fund Agreement).
4. According to IMF resolutions, the SDR represents five freely usable currencies in an adjustable proportion (called “SDR basket”), whose currencies are relatively stable and can be used as a unit of currency value.
5. In accordance with Article 30 of the Fund Agreement, the SDR can also be used for other related financial transactions between Fund members and non-members, subject to IMF approval.
